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Invest in financial institutions in Cambodia offering innovative financing solutions for SMEs, particularly for those in the agriculture sector. Many players have emerged in this segment to provide financial services (including, loans, deposits, money transfers, micro-insurance, payment services, payroll services, and international remittance services) to low-income populations with an ambition to improve their livelihood options and to SMEs in the agriculture sector. Such players have been successful in attracting private investor interest, raising funds in the range of USD 3-25 mn.
Investments in the financial services sector in Cambodia require a cautious evaluation of the service providers that have been subject to criticism regarding excessive costs to customer, aggressive loan recovery practices and human rights violations. To combat such malpractices, relevant authorities have taken steps such as setting an annualized interest rate ceiling at 18 per cent and more recently a code of conduct for financial service providers. (24) (25) (28)
Following are some examples of companies that are active in this space as an illustration of the commercial viability of the investment opportunity: AMK Microfinance Institution Plc (AMK), formerly Angkor Mikroheranhvatho (Kampuchea) Co. Ltd., was founded in 2001 to provide microfinance services (including, loans, deposits, money transfers, micro-insurance, payment services, payroll services, and international remittance services) to low-income population to improve their livelihood options and to MSMEs in agriculture sector.
Chamroeun Microfinance Plc. (Chamroeun), formerly known as Chamroeun Microfinance Limited was founded in 2006. It is an MFI providing several types of loan products, including working capital for businesses, group loans and loans for social emergencies. It aims to serve Aquaculture farmers and is working with agri-cooperatives, providing not only finance, but also support in ensuring investment readiness of such enterprises.
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Provision of affordable loans for SMEs using customer centric systems and processes that promote enterprise growth, financial inclusion of last mile businesses.
